TORONTO, May 31, 2019 /CNW/ - Axis Auto Finance Inc.
("Axis" or the "Company"), (TSXV: AXIS) Canada's fastest growing publicly-traded
sub-prime automotive finance company, today announced financial
results for the third quarter of fiscal 2019 ending March 31, 2019.
HIGHLIGHTS
- Gross finance receivables of $112.6
million as at March 31, 2019,
up from $60.3 million as at
March 31, 2018;
- Quarterly revenues of $7.5
million compared to $3.5
million in the third quarter of 2018;
- Average annualized portfolio yield in third quarter of 35.7%,
no change from fiscal 2018;
- Annualized credit losses rose by 2.96% as compared to the third
quarter 2018; and
- Reportable delinquency of 5.66% as at March 31, 2019, down from 7.37% as at
December 31, 2018.
Finance receivables originations for the nine months ended
March 31, 2019 were $48.3 million, contributing to the growth in
gross finance receivables, which increased to $112.6 million as at March
31, 2019 from $60.3 million as
at March 31, 2018.
Revenues of $7.5 million for the
third quarter 2019, increased 116% from $3.5
million for the third quarter 2018, equating to an
annualized revenue run-rate of $30
million.
Portfolio yields maintained strong levels, at 35.7% in the third
quarter 2019, unchanged from fiscal 2018. Annualized credit
losses rose 2.96% as compared to the third quarter 2018. The
increase in the loss rate is consistent with the seasonality of the
industry and more specifically, was triggered by higher
delinquencies at the end of the second quarter and the realization
of lower recovery rates on repossessed assets during the
period.
Adjusted earnings (loss) for the third quarter of 2019 was
($2.0) million, as compared to
$0.5 million in the third quarter of
2018.
Net income (loss) for the third quarter ending March 31, 2019 was ($1.7)
million or ($0.018) per share,
as compared to ($0.4) million or
($0.005) per share for the
comparative quarter ending March 31,
2018.
About Axis Auto Finance
Axis provides non-standard financing options targeting roughly
30% of Canadians (Source: Equifax) that do not qualify for
traditional bank-type financing for their used vehicle purchase.
Through personalized service and a commitment to building strong,
long-lasting relationships with dealer partners, Axis continues to
be one of Canada's fastest-growing
auto-financing companies.
Further information on the Company can be found at
www.axisautofinance.com.
1 In order to track the performance of its
finance receivable portfolio in a given period without the
volatility associated with estimates and assumptions, Axis
introduced a non-IFRS measure called Adjusted Earnings. This
measure, now included in the MD&A, is equal to the net income
(loss) for the period, adjusted for (i) non-cash expense items (as
identified in the Statement of Cash Flows) (ii) actual credit
losses incurred (iii) non-recurring one time transaction and
integration costs and (iv) specified expenses which were entirely
recognized in a given quarter but for which the benefit was derived
over more than a given quarter. For further information on
Axis non-IFRS measures, please see the Management's Discussion and
Analysis for the corresponding period.
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policies of the Exchange) accepts responsibility for the adequacy
or accuracy of this release.
SOURCE Axis Auto Finance Inc.